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VNITED  STATES  DEPARTMENT  OF  COMMERCE 

■ — ■'  I J^— 

SUPPLEMENT  TO 

OMMERCE 
E P O R T S 

Pubtlahad.  by  tha  BUREAU  OF  FOREIGN  u^.ND  DOMESTIC  COMMERCE 


TRADE  INFORMATION  BULLETIN~No.  312 


\ ^ 


CHANGING  FACTORS 
IN  THE  ECONOMIC  LIFE 

OF  IS  ISSUED  FDD 


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•YTHE  PRESS  NOT  EAKLIERTHh., 
F£b  16 


WASHINGTON  : GOVERNMENT  PRINTING  OFFICE  I IfSI 


INTRODUCTION 


\ 


The  changing  character  of  China’s  foreign  trade  during  recent 
yeare  has  heen  of  great  significance  to  those  who  are  closely  in  touch 
with  general  economic  trends  in  the  Orient.  Greater  diversification 
'of  industry,  an  appreciable  displacement  of  foreign  wares  by  domestic 
manufactures,  increasing  imports  of  staple  foodstuffs,  the  higher 
value  of  commodities  in  foreign  trade — all  these  factors  give  a new 
interpretation  to  the  trend  of  China’s  trade. 

Although  China  is  essentially  an  agricultural  country,  little  accu- 
rate information  has  hitherto  been  available  on  its  agricultural 
economics  and  the  condition  of  its  agriculturists,  upon  whom,  in  the 
last  analysis,  the  country’s  purchasing  power  depends.  In  view  of 
the  recent  disturbed  conditions  in  China,  it  is  felt  that  the  consider- 
able data  on  rural  conditions  included  in  this  bulletin  will  be  of  par- 
ticular interest. 

The  far  eastern  division  of  the  Bureau  of  Foreign  and  Domestic 
Commerce  publishes  each  week  in  Commerce  Reports  articles  on 
general  trade  conditions  in  China  and  other  far  eastern  countries. 
The  division  also  has  on  file  a large  amount  of  commercial  data 
respecting  the  Orient  and  wfil  gladly  reply  to  any  specific  trade 
inquiry  that  may  be  addressed  to  it. 

Julius  Klein,  Director. 

(«) 


tin  t 


1^9  OHITKin* 


CHANGING  FACTORS  IN  THE  ECONOMIC  LIFE  OF 

CHINA 


CONTENTS 


Economic  effects  of  disorders. 

Changes  in  trade. 

Changing  trade  channels. 

Political  instability  no  bar  to  progress. 
Marketing  and  sales  methods. 
Standard  of  living. 


Agricultural  economics. 


North  China. 


Central  China. 
Purchasing  power  of  China. 
E.xports. 

Imports, 


Political  and  military  disturbances  have  of  late  years  been  occurring 
with  increasing  frequency  in  China.  The  spread  of  these  disorders, 
with  varying  degrees  of  intensity,  to  practically  all  those  districts 
which  produce  articles  of  economic  importance  to  the  United  States, 
such  as  silk,  wood  oil,  vegetable  oil,  tea,  and  hides  and  skins,  and 
which  at  the  same  time  absorb  most  of  the  American  exports  to  China, 
has  brought  the  subject  forcibly  to  the  attention  of  American  business 
interests.  It  is  therefore  felt  that  a brief  discussion  of  the  question 
would  be  of  assistance  to  the  American  manufactm-er  or  exporter 
planning  long-term  sales  activities  in  this  field. 

From  the  material  presented  in  this  bulletin  three  important  phases 
of  China’s  present-day  economic  status  are  evident:  (1)  China’s  for- 
eign trade  during  the  last  decade  has  not  increased  appreciably  in 
volume,  as  is  shown  by  a comparative  analysis  of  values  with  due 
allowance  for  price  fluctuations  and  changes  in  trade  channels;  (2) 
the  Chinese  are  developing  in  a limited  way  as  a commercial  and  in- 
dustrial group,  securing  for  themselves  increasing  participation  in  the 
country’s  foreign  and  domestic  trade;  and  (3)  the  economic  status  of 
China’s  rural  and  agricultural  population,  constituting  about  80  per 
cent  of  the  total  population,  has  not  improved  within  the  last  decade 
and  in  many  sections  has  materially  declined. 

An  exhaustive  analysis  necessary  to  the  absolute  establishment  of 
these  points  is  obviously  beyond  the  compass  of  a publication  of  this 
size.  However,  the  statistical  data  herein  presented,  which  is  supple- 
mented by  first-hand  investigation  in  the  field  and  by  the  opinions 
of  several  observers  of  many  years’  experience  in  China,  will  serve  to 
establish  them  as  the  outstanding  features  of  economic  China. 

For  convenience  we  shall  give,  first,  the  immediate  or  temporary 
effects,  and  second,  those  more  permanent  effects  visible  over  a long 
period  of  time  and  more  vitally  affecting  the  economic  status  of  the 
country.  These  two  effects  are  seldom  distinguished,  and  because' 
of  the  confusion  resulting  from  this  lack  of  differentiation  it  seems 
desirable  to  give  the  separate  treatment  indicated. 


(1) 


2 


ECONOMIC  EFFECTS  OF  DISORDERS 

TEMPORARY  EFFECTS 

The  recent  outl^reak  of  civil  war  in  China  was  the  immediate  cause 
in  Hankow^  Peking,  and  Tientsin  of  the  concUtions  outlined  below. 
Conditions  in  Shanghai  were  quite  similar  and  more  pronounced, 
since  the  volume  of  merchandise  distributed  there  is  greater,  but  from 
the  account  presented  a better  understanding  of  the  whole  China 
situation  is  possible. 

Hanlcow. — When  the  political  situation  became  acute  in  Shanghai 
late  in  August  and  early  in  September,  instructions  were  immediately 
issued  that  no  further  purchases  should  be  made  from  Hankow. 
This  reacted  to  depress  the  value  of  the  export  cargo  actually  lying 
in  Hankow  and  available  for  shipment  to  Shanghai.  With  an  acute 
silver  situation  in  Shanghai,  money  was  hoarded  at  Hankow  or  shipped 
to  Shanghai  to  clear  certain  outstanding  accounts.  During  this 
period  Hankow  buyers  had  purchased  export  cargo  in  the  interior, 
which  takes  eight  weeks  or  more  to  reach  Hankow.  This  cargo  was 
bought  with  drafts  drawn  at  interior  points.  With  the  knowledge 
that  the  cargo  could  not  be  sold  upon  arrival  at  Hankow  it  was 
necessary  for  these  interior  buyers  to  collect  silver  to  ship  to  Hankow 
so  that  the  drafts  might  be  met.  This  action  depleted  interior  stocks 
of  silver  and  created  panic,  accompanied  W the  hoarding  of  whatever 
silver  was  available  at  interior  points.  With  the  shortage  of  silver 
at  these  points  the  value  of  copper  coins  declined,  and  all  copper 
coinage,  local  cash  notes,  etc.,  became  of  little  value  as  compared 
with  silver. 

Credit  sales  made  prior  to  the  September  financial  crisis  could  not 
be  settled  by  the  buyers,  as  they  could  not  seem'e  silver  to  clear  ac- 
counts. To  settle  in  small  coinage  would  cause  them  to  suffer  very 
heavy  losses,  as  thy  had  bought  when  copper  exchange  was  normal. 
There  were  very  heavy  stocks  of  export  cargo  assembled  at  the  dif- 
ferent transshipping  points  of  the  interior  and  absolutely  no  buyers, 
as  money  was  not  available  for  purchases.  Export  merchandise  was 
increasing  in  volume  at  Hankow,  as  the  cargo  en  route  to  the  port 
could  not  be  stopped  in  transit.  It  was  therefore  necessary  to  do  a 
great  deal  of  financing  and  with  no  outside  money  coming  to  Hankow 
for  the  purpose.  This  overburdened  the  local  market.  There  could 
be  no  relief  in  the  situation  imtil  export  cargo  was  demanded  from 
Hankow;  if  Shanghai  would  start  to  buy  immediate  relief  could  be 
expected.  If  financial  conditions  had  been  more  nearly  normal, 
enabling  purchases  to  have  been  made,  it  is  believed  that  Hankow 
last  autumn  would  have  one  of  the  best  seasons  in  many  years. 
Hankow  prices  on  export  cargo  were  approximately  from  10  to  15 
per  cent  below  the  purchase  value  of  this  cargo  at  interior  points. 

Peking. — -In  Peking  during  this  period  business  was  practically  at 
a standstill.  No  attempts  were  made  by  foreign  firms  to  negotiate 
sales  to  the  departments  of  the  Government,  which  are  usually  in 
the  market  for  at  least  small  orders  of  telegraph,  telephone,  or  rail- 
way equipment.  The  city  was  practically  under  martial  law  during 
August  and  September,  and  it  was  with  difficulty  that  goods  of  any 
kind  could  be  moved,  owing  to  the  confiscation  of  carts  and  draft 
animals  by  the  military  authorities.  A few  shipments  of  rugs  were 


3 


dispatched  to  America,  but  these  necessarily  were  small,  as  only  one 
car  a week  was  available  each  way  between  Peking  and  Tientsin  for 
freight  movement.  The  tie-up  of  transportation  within  the  city  was 
so  complete  that  it  was  difficult  for  houseowners  to  secure  delivery  of 
coal.  Building  was  stopped  because  of  the  inability  of  the  contractors 
to  move  materials. 

Tientsin. — From  Tientsin  reports  were  received  that  consciousness 
of  the  serious  situation  confronting  trade  had  permeated  all  business 
circles.  Hopes  that  conditions  would  shortly  change  for  the  better 
were  abandoned.  Exporters  who  for  a time  were  able  to  carry  on 
with  cargo  already  in  Tientsin  were  practically  empty  handed,  with 
questionable  prospects  of  new  stocks  arriving  in  the  immediate  or  near 
future.  ^Vrrivals  of  import  cargo  afloat  before  arrangements  could  be 
made  to  postpone  shipment  were  carried  in  most  cases  by  the  foreign 
importers,  Chinese  dealers  being  reluctant  to  accept  delivery. 

During  a few  weeks  in  September  at  least  nine  Chinese  merchant 
ships  were  commandeered  in  Tientsin  Harbor  b}’  the  military  author- 
ities. These  vessels  were  small  coasting  ships  of  350  to  400  tons. 
They  were  used  as  troop  transports  to  carry  some  of  Wu  Pei-fu’s 
forces  northward. 

PERMANENT  EFFECTS 

A survey  of  China’s  trade  as  a whole  over  a long  period  of  time 
shows  no  great  change  by  reason  of  purely  domestic  causes.  It  is 
true  that  economic  development  has  been  hampered  and  has  even 
retrogressed  during  the  last  decade,  but  nevertheless  the  remarkable 
character  of  the  Chinese  has  enabled  the  country  to  emerge  from  its 
various  disturbances  with  little  or  no  permanent  ill  effects  from  an 
economic  standpoint. 

In  the  period  1897  to  1903,  covering  those  years  immediately 
preceding  and  those  following  the  Boxer  rebellion  of  1900,  there  was  a 
steady  and  consistent  increase  in  trade,  interrupted  only  temporarily 
in  the  year  1900.  In  1899  the  exports  amounted  to  195,784,832 
haikwan  taels,  while  the  imports  totaled  264,748,456.  In  1900  the 
exports  dropped  to  158,996,752  haikwan  taels,  and  the  imports  to 
211,070,422.  From  the  period  of  the  Boxer  uprising  until  1909, 
while  the  trade  balance  I’emained  unfavorable,  the  total  foreign 
commerce  increased  appreciably.  This  indicates  favorable  develop- 
ment during  these  comparatively  peaceful  years.  The  outbreak  of 
the  revolution  in  1911  which  made  China  a Republic  did  not  seem  to 
materially  affect  trade.  The  total  foreign  trade  of  China  in  1911 
amounted  to  848,842,109  haikwan  taels  as  co  npared  with  843,798,222 
in  1910. 

. In  1917  there  was  a very  serious  attempt  to  overthrow  the  new 
Republic.  This  caused  great  internal  dissension  and  strife,  undoubt- 
edly interfering  with  regular  trade  processes,  but  it  is  not  reflected 
in  the  total  trade  returns  of  the  country,  imports  advancing  from 
516,406,995  haikwan  taels  in  1916  to  549,518,774  in  1917;  and  exports 
registering  a slight  decline  from  481,797,366  in  1916  to  462,931,630 
in  1917. 

A similar  situation  confronts  China  to-day,  and  we  might  expect 
the  same  trade  conditions  to  prevail.  In  spite  of  the  greatly  unsettled 
state  of  the  country  in  1923,  the  foreign  trade  was  valued  at  1,676,- 
320,303  haikwan  taels,  which  represents  an  increase  of  76,378,720 


4 


taels  over  the  preceding  year’s  total.  The  point  of  particular  interest 
here  is  .the  fact  that  China’s  imports  declined  by  about  22,000,000 
taels  from  the  previous  year,  while  exports,  which  are  more  immedi- 
ately dependent  on  domestic  production  and  transportation  facilities, 
increased  by  nearly  100,000,000  taels. 

Such  greatly  distorted  views  of  the  disturbances  in  China  are 
circulated  abroad,  and  even  commonly  accepted  in  China,  that  the 
following  comments  made  recently  by  the  Chinese  customs  com- 
missioner (British  subject)  at  Shanghai,  in  his  report  for  1923,  are  of 
particular  importance  at  this  time. 

There  has  not  been  a time  since  the  outbreak  of  the  revolution  in  1911  when  the 
interior  was  not  unsettled.  Many  of  the  years  between  then  and  the  present  time 
(1924)  were  good  years,  both  from  a trade  and  business  point  of  view  * * *_ 

It  is  then  a fair  inference  that  contributory  political  events  and  disturbed  con- 
ditions in  China  do  not  atfect  trade  and  business  as  much  as  supposed  * * *; 

that  there  is  room  for  improvement  in  the  present  conditions  can  not  be  gain- 
said, but  that  these  conditions  are  the  main  cause  of  the  business  slump  is  a 
statement  which,  in  the  interests  of  business  and  trade  alike,  it  would  seem 
high  time  to  contradict.  * * * Moreover,  China  is  so  vast  a country  that  such 

impediments  as  civil  wars,  floods,  and  famines  have  only  a very  limited  effect 
on  the  entrepot  trade  of  Shanghai,  which  at  best  taps  only  an  infinitesimal 
portion  of  its  resources. 

A country  larger  than  the  United  States  in  area,  with  probably 
four  times  our  population,  China  will  always  possess  large  districts 
and  entire  Provinces  where  economic  developments  can  proceed 
unhampered  by  internal  disorders.  A lack  of  confidence  and  a 
general  unwillingness  to  make  long-term  investments  of  capital  are 
the  specific  results  of  the  continual  domestic  disturbances,  both 
political  and  military.  These  disturbances,  which  are  often  aggra- 
vated by  preventable  natural  occurrences  such  as  floods  and  famines, 
make  necessary  the  reallocation  of  trade  routes  and  conveyances  and 
almost  invariably  bring  about  a dislocation  of  trade.  However, 
business  interests  in  China  are  prone  to  charge  all  their  difficulties  to 
the  domestic  situation  and  lose  sight  of  factors  arising  from  world- 
wide conditions  such  as  dislocation  of  accustomed  markets  in  Europe 
and  Russia,  derangements  of  monetary  systems  in  many  of  these 
countries,  and  instability  of  foreign  exchanges  in  general. 

FOREIGN  TRADE 

The  method  used  in  China,  and  common  in  most  countries  of  the 
world,  of  gauging  the  course  of  trade  by  the  total  values  of  imports 
and  exports  renders  it  impossible  under  the  prevailing  conditions  of 
price  fluctations  to  judge  accurately  the  progress  of  trade  over  a given 
period,  since  the  quantities,  a more  reliable  basis  of  comparison,  of 
many  commodities  are  not  entered  in  the  statistics. 

In  order  to  provide  a more  accurate  foundation  for  a comparison 
of  the  value  of  Cliina’s  imports  during  recent  years  with  those  of 
1913,  the  following  table  has  been  prepared  by  the  Chinese  Maritime 
Customs,  showing  the  declared  values  of  imports  in  1913,  1920,  1921, 
and  1922  and  the  values  of  imports  in  the  three  last-named  years 
reconverted  on  the  basis  of  average  1913  values: 


0 


Direct  Imports  from  Foreign  Countries  into  China 


[In  thousands  of  haikwan  taels) 


Groups 

Values  declared  in — 

1920 
values 
recalcu- 
lated at 
average 
1913 
values 

1921 
values 
recalcu-, 
lated  at 
average 
1913 
values 

1922 
values 
recalcu- 
lated at 
average 
1913 
values 

1913 

1920 

1921 

1922 

Cotton  goods 

Woolen  goods.. 

Metals  and  minerals 

Sundries 

Total 

182, 420 
4,880 
29,156 
180,260 

246, 813 
4,791 
61, 572 
261, 545 

208,663 
7,408 
60,077 
356,  279 

218,  523 
8,794 
49,928 
410, 007 

127, 920 
2,252 
51, 199 
158,026 

105, 110 
2,588 
42,271 
233, 336 

121,417 
4,369 
46, 431 
293, 336 

396,  716 

574,  721 

632, 427 

687,  252 

339, 397 

383,  305 

465,  553 

The  values  entered  in  this  table  for  the  first  tliree  groups — cotton 
goods,  woolen  goods,  and  metals  and  minerals — represent  the  total 
value  of  all  the  items  comprising  these  groups  actually  recorded  in 
the  customs  returns  as  having  been  imported  during  the  years  1913, 
1920,  1921,  and  1922.  In  the  case  of  the  fourth  group — sundries — 
only  the  values  of  the  more  important  articles,  aggregating  some  50 
per  cent,  have  been  included.  The  list  as  it  stands  deals  with  about 
three-fourths  of  the  total  direct  foreign  import  trade  of  China,  which 
is  ample  for  purposes  of  comparison.  Examination  of  the  figures 
reveals  some  interesting  facts.  In  the  case  of  cotton  goods,  for 
instance,  it  will  be  seen  that,  while  the  values  as  declared  to  the 
customs  in  1921  and  1922  show  an  important  increase  over  those 
declared  in  1913,  the  values  in  both  these  years,  if  recalculated  on 
the  basis  of  average  1913  values,  record  a serious  decline  and  are  far 
below  the  1913  total.  Values  in  1922,  however,  show  a reasonable 
increase  over  those  of  1921.  Recalculated  values  for  woolen  goods 
in  1922  indicate  that  this  group,  although  not  exceeding  the  1913 
declared  values,  approaches  them  very  closely  and  also  registers  a 
satisfactory  advance  over  1921.  Metals  and  minerals,  together  with 
sundries,  present  a different  aspect.  These  two  groups  both  show  a 
considerable  advance  over  the  1913  declared  values,  thus  demon- 
strating clearly  the  progress  made  in  these  lines  during  recent  years. 

In  connection  witn  the  accompanying  chart  of  China’s  trade  since 
1907  it  might  be  well  to  mve  a brief  statement  of  the  country’s  trade 
balance  and  a sketch  of  tM  background  of  present-day  trade  in  China. 
From  1913  to  1923  China’s  foreign  trade  has  increased  from  970,- 
000,000  taels  to  1,600,000,000  taels,  or  165  per  cent.  The  balance  of 
the  trade  during  the  10  years  has  been  against  China  on  an  average 
of  150,000,000  taels,  or  about  .'^200,000,000  silver  ^ per  annum.  In 
1923  the  disparity  between  exports  and  imports  was  170,000,000 
taels,  while  in  1922  and  1921  it  was  even  higher,  namely,  290,000,000 
and  .305,000,000  taels.  In  1919  imports  exceeded  exports  by  a margin 
of  only  16,000,000  taels. 

In  addition  to  this  unfavorable  merchandise  trade  balance  should 
be  mentioned  the  foreign  debt  service,  which  for  railways  amounts 
to  about  $50,000,000  and  for  other  obligations  about  $115,000,000.  A 

' The  value  of  the  Chinese  silver  dollar  is  based  on  the  price  of  silver  and  is  therefore  subject  to  constan  t 
auctuation.  The  average  value  is  approximately  $0.50,  United  States  currency.  In  this  report,  unless 
otherwise  slated,  all  dollar  values  refer  to  Chinese  dollars. 


6 


further  net  import  of  gold  and  silver  bullion,  amounting  in  1923 
to  some  $60,000,000,  adds  to  China’s  adverse  trade  balance. 
Domestic  loans  with  accrued  interest  as  of  June  30,  1924,  were 
$208,400,000  with  adequate  security  and  $473,000,000  without 
security,  and  the  foreign  loans  amounted  to  $1,029,000,000  secured 
and  $565,000,000  unsecured,  making  a total  of  $2,275,400,000.  The 
combined  Chinese  and  foreign  debts,  unsecured,  the  repayment  of 
which  is  now  due,  is  in  excess  of  $480,000,000. 

In  addition  to  the  exports,  items  which  tend  to  reduce  the  unfavor- 
able balance  are  remittances  from  Chinese  abrbad,  estimated  to  be 
at  least  $100,000,000  a year;  money  required  for  upkeep  of  foreign 
missions,  hospitals,  and  schools  in  China,  probably  $35,000,000; 
expenses  of  foreign  legations,  consulates,  legation  guards,  expedi- 
tionary forces,  and  naval  vessels,  and  for  maintenance  and  repairs 
to  foreign  shipping,  about  $40,000,000;  money  brought  back  by 
returning  emigrants  and  that  spent  by  tourists,  probably  $10,000,000. 
China  collects  no  shipping  or  insurance  profits  and  no  interest  on 
loans  to  foreign  countries.  Remittances  from  its  nationals  in  other 
countries  are  the  only  returns  from  abroad  of  this  nature. 

Analysis  of  China ’s  import  and  export  trade  over  a period  of  years 
immediately  preceding  the  Boxer  rebellion  of  1900,  through  1923, 
discloses  a general  increase  in  value,  volume,  and  variety  of  this 
trade  over  the  entire  period,  but  these  are  so  obviously  aftected  by 
factoi-s  beyond  the  influence  of  China’s  domestic  affairs  as  to  afford 
little  more  than  a basis  on  which  to  expend  further  investigation. 
That  China ’s  domestic  as  well  as  foreign  trade  is  more  closely  linked 
up  with  international  market  factors  than  is  commonly  understood, 
is  shown,  for  example,  in  the  annual  report  of  the  customs  commis- 
sioner in  the  Hangchow  district  for  1923.  Practically  all  districts 
in  China  report  similar  conditions  with  varying  degrees  of  effective- 
ness. To  connect  the  prosperity  of  an  isolated  interior  country 
district  of  China  with  conditions  in  Russia  and  Europe  may  seem  at 
first  sight  a little  far-fetched.  However,  among  the  factors  reported 
as  most  intimately  affecting  conditions  in  this  district  are  included 
the  closing  up  of  the  Siberian  routes,  the  slowness  in  recovery  of 
sound  conditions  in  European  markets  after  the  World  War,  and 
the  recent  disastrous  earthquake  in  Japan.  The  autumn  floods 
during  the  previous  years  had  been  followed  by  famine  and  other 
forms  of  suffering,  which  naturally  lessened  the  purchasing  power 
of  the  people  in  this  district  and  reduced  their  purchases  to  bare 
necessaries  of  life.  The  cost  of  living  during  military  operations  in 
this  district  rose  on  an  average  50  per  cent.  During  the  same  period 
conveyance  of  native  produce  to  various  places  in  the  Provinces, 
both  by  river  and  overland,  was  considerably  obstructed.  The 
merchants  were  chary  of  laying  in  winter  supplies,  while  considerable 
quantities  of  minerals  and  rice  ready  for  transportation  had  to  be 
held  back.  Heavier  taxation  and  forced  contributions  aggravated 
considerably  the  general  financial  depression. 

CHANGES  IN  TRADE 

The  most  salient  point  as  regards  exports  is  the  decline  in  tea 
Avhich  in  1820  represented  three-fourths  of  China’s  exports;  in  1867 
the  proportion  had  fallen  to  60  per  cent,  dropping  to  16  per  cent  in 
1899.  At  present,  owing  in  part  to  the  Great  War,  the  proportion 


7 


is  only  4 per  cent.  Silk  has  been  more  successful  in  holding  its  own. 
In  1860  China  supplied  half  of  the  world’s  raw  silk,  and  for  many 
years  after  that  the  trade  was  prosperous.  The  average  annual 
value  of  silk  exports  in  the  seventies  amounted  to  almost  £10,000,000, 
but  the  advent  of  silkworm  disease  soon  after  this,  and  the  competi- 
tion of  Japan,  where  the  Government  fostered  the  industry  and 
combatted  disease,  displaced  this  valuable  product  from  its  former 

Elace  in  the  trade.  It  is  true,  of  coui-se,  that  the  value  of  the  trade 
as  increased  (the  average  annual  value  of  silk  exports  during  the 
last  decade  has  been  103,000,000  taels,  as  against  75,000,000  taels 
for  the  previous  decade),  but  in  view  of  the  high  position  reached  by 
Japan  from  much  humbler  beginnings,  the  Chinese  trade  is  dis- 
appointing. There  can  be  no  doubt,  but  that  with  the  employ- 
ment of  scientific  methods  it  could  be  at  least  doubled. 

In  1902  new  articles  of  export  appeared,  the  most  prominent  being 
oilseeds  (soya  beans  and  sesame  seed),  wood  oil,  skins,  furs,  and 
hides.  The  trade  in  hides  began  during  the  great  famine  of  1877, 
when  thousands  of  cattle  were  slaughtered  for  food  and  their  hides 
exported.  It  expanded  between  1890  and  1895,  when  goatskins 
began  to  come  forward,  the  western  markets  being  in  increasing 
need  of  leather,  and  by  1899  had  reached  a prominent  place  from 
which  it  has  not  receded.  Cereals,  including  vegetable  foodstuffs, 
gained  later  importance.  The  introduction  of  variety  into  the  list 
of  Chinese  exports  dates  from  the  early  eighties,  when  the  people  of 
the  interior  were  beginning  to  become  familiar  with  western  goods 
through  the  influence  of  the  treaty  ports,  and  because  of  steamers 
with  uieir  rapid  transit. 

The  year  1897  marked  a significant  period  in  China’s  import  trade. 
Opium  reached  the  record  figure  of  £10,250,000  sterling  and  accounted 
for  44  per  cent  of  the  total  import  trade.  Cotton  goods,  including 
a consiaerable  share  of  American  manufactures,  were  rapidly  increas- 
ing in  volume.  Woolens  were  annually  prominent.  Imports  of 
kerosene,  which  began  in  1876,  now  amounted  to  approximately 
100,000,000  gallons.  Very  little  rice  was  imported  at  tms  time. 

TVenty  years  later  a great  change  had  taken  place  in  the  character 
of  the  import  trade.  The  value  of  imported  opium,  although  only 
slightly  less  than  in  1897,  was  now  only  13.5  per  cent  of  the  total 
imports,  and  the  amount  had  decreased.  Cottons  had  increased 
from  22,000,000  to  103,000,000  taels,  of  which  amount  Indian  yarn 
provided  over  one-third.  Cotton  goods  of  the  better  grades,  such 
as  chintz,  printed  twills,  cambrics,  and  handkerchiefs,  were  now 
purchased  in  large  quantities. 

Cotton  piece  goods  represent  the  largest  single  item  in  China’s 
imports.  Ten  years  ago  they  accounted  for  a third  of  the  total 
import  trade  of  the  country.  The  proportion  of  this  trade  in  1922 
was  16  per  cent  and  in  1923,  14  per  cent  of  all  imports.  This  falling 
off  is  due  to  the  constant  expansion  of  the  cotton  industry  in  China, 
not  only  in  the  production  of  raw  cotton  but  in  spinning  and  weaving. 
Imports  of  cotton  yarn  in  1923  were  775,045  piculs,^  as  against 
1,219,486  piculs  in  1922.  The  diminished  importations  are  accounted 
for  by  the  growth  in  production  of  the  local  mills,  which  turned  out 
1,500,000  piculs  in  1923.  At  this  rate  of  production  it  will  not  be 


> One  picul  equals  133H  pounds. 

28873— 25t 2 


8 


long  before  China  will  find  itself  independent  of  outside  sources  for 
its  needs  in  cotton  yarn.  Consequently,  the  importation  of  foreign 
goods  in  this  particular  line  is  gradually  decreasing  while  the  Chinese 
domestic  consumption  and  export  is  increasing. 

The  customs  hgures  show  that  in  1913  eight  varieties  of  cotton 
goods  were  imported  to  the  amount  of  26,178,179  piculs,  while  in 
1923  the  figure  was  17,016,884  piculs.  In  1922  China  exported  five 
varieties  of  cotton  and  woolen  goods  to  the  amount  of  104,34.5  piculs 
which  increased  in  1923  to  713,605  piculs. 

Within  the  last  20  years  76  Chinese-owned  cotton  mills  have  come 
into  existence  with  2,639,862  spindles  in  operation  and  32,500  more 
spindles  in  process  of  installation.  In  the  same  time  13,403  working 
looms  have  been  reported,  with  5,625  more  in  construction.  The 
annual  imports  of  kerosene  oil  in  this  period  ranged  from  100,000,000 
to  230,000,000  gallons  (1914).  Metals  had,  however,  not  advanced 
proportionally,  but  the  growth  of  sundries  was  notable,  showing  the 
progress  in  wealth,  and  a desire  for  comfort  and  luxury. 

A striking  feature  of  the  import  trade  is  the  increase  in  the  absorp- 
tion of  foodstuffs  from  abroad.  The  old  order — China  importing 
opium  and  a few  sundries — has  been  completely  swept  away,  and 
although  the  country  is  looked  to  as  a large  supplier  of  foodstuffs  to 
the  western  world,  it  is  no  less  an  importer  on  a large  scale. 

CHANGING  TRADE  CHANNELS 

The  futility  of  forming  an  opinion  of  conditions  based  immediately 
on  trade  statistics  is  shown  further  in  the  case  of  Canton.  The  value 
of  the  import  and  export  trade  of  Canton  in  1923  amounted  to 
almost  224,000,000  haikwan  taels,  exceeding  that  of  the  previous 
vear  by  11  per  cent — this  in  spite  of  practically  continuous  distur- 
bances in  the  city  of  Canton  itself,  as  well  as  in  the  large  hinterland 
which  is  of  such  vital  importance  to  Canton  trade. 

This  increase  in  the  value  of  trade  is  not  to  be  accounted  for  merely 
bv  changes  in  price  levels,  for  in  certain  important  articles  the  trend 
of  prices  appears  to  have  been  downward.  An  important  factor 
affecting  this  increase  is  that  much  Chinese  goods  which  ordinarily 
would  have  been  carried  by  jimks,  and  thereby  come  within  the 
jurisdiction  of  the  native  customs,  whose  records  are  not  commonly 
included  in  those  of  the  maritime  customs,  was  transported  by 
steamers.  Here  it  might  be  well  to  note  that  native  customhouses 
exist  side  by  side  with  the  Chinese  maritime  customs  at  the  treaty 
ports  and  at  all  important  stations  on  the  coast  and  inland.  At  the 
treaty  ports  the  considerable  amount  of  goods  carried  in  Chinese 
sailing  craft,  largely  junks,  comes  under  their  jurisdiction.  The 
values  and  quantities  given  in  the  foreign  trade  returns  of  China  do 
not  include  the  value  of  goods  carried  coastwise,  nor  do  they  com- 
prise the  whole  extent  of  the  foreign  trade,  inasmuch  as  vessels  of 
Chinese  type,  which  are  not  within  the  control  of  the  maritime  cus- 
toms, ply  between  foreign  and  Cliinese  (both  treaty  and  nontreaty) 
ports.  Brigandage,  piracy,  illegal  taxation,  and  general  uncertainty 
of  transportation  of  native  craft  have  brought  under  the  jurisdiction 
of  the  maritime  customs  a tremendous  volume  of  both  import  and 
export  trade  hitherto  transported  by  native  craft,  thus  making  it 
exceedingly  difficult  to  arrive  at  the  true  indication  of  announced 
trade  returns. 


9 


The  customs  revenue  at  Canton  in  1923  from  both  import  and 
export  duties  was  the  largest  recorded  in  many  years.  These  gains 
are  attributed  mainly  to  the  movement  of  more  Chinese  cargo  by 
steamers,  rather  than  a healthy  improvement  in  general  trade  con- 
ditions. Tea  exportations  increased  by  70  per  cent,  and  here  again 
this  signifies  not  an  increase  in  trade  but  merely  a preference  for 
conveyance  by  steamer  rather  than  junk  under  present  disturbed 
conditions.  A conservative  estimate  would  place  Canton’s  actual 
trade  during  1923  at  a minimum  of  50  per  cent  of  that  of  1922.  A 
striking  feature  of  Canton  trade  during  1922  was  in  the  value  of 
foreign  goods  imported  into  Canton,  uie  value  of  which  rose  to 
75,000,000  haikwan  taels,  an  increase  of  25  per  cent  over  the  previous 
year  and  more  than  double  the  figure  for  1920. 

POLITICAL  INSTABILITY  NO  BAR  TO  PROGRESS 

There  is  no  more  striking  example  of  China’s  ability  to  progress  in 
the  face  of  what  appears  to  be  insurmountable  obstacles  than  the 
developments  in  the  past  few  years  in  Canton.  The  contrast  between 
the  Canton  of  to-day  and  of  seven  years  ago  is  striking  enough  when 
it  is  considered  that  this  remarkable  development  tooK  place  within 
the  remarkably  short  space  of  seven  years,  out  it  is  even  more  star- 
tling when  it  is  understood  that  these  seven  years  represented  the  most 
stormy  period  of  Canton’s  history — years  of  civil  war  and  strife, 
extending  from  the  city  itself  to  all  parts  of  the  neighboring  provinces. 
A well-known  British  correspondent  has  given  the  following  descrip- 
tion of  this  striking  contrast: 

The  old  city  of  Canton,  covering  nearly  square  miles,  was  nearly  all  the 
same — low  buildings  setting  tight  to  the  ground,  packed  so  close  that  the  people 
could  hardly  move  and  inhabited  to  the  last  degree  of  densit.y.  Such  Canton 
had  been  for  centuries  and  such  were  the  conservatism  and  prejudices  and  cus- 
toms of  the  people  that  it  seemed  as  if  it  must  continue  for  ages  to  come.  [This 
was  the  Canton  of  seven  years  ago.]  Today  Canton  is  a modern  city  of  broad 
streets  and  lofty  buildings,  a European  capital.  It  is  lit  by  electricity  and 
hundreds  of  motor  cars  serve  its  citizens.  The  ancient  muddy  foreshore  of  the 
river  is  replaced  by  a masonr}-  bund  backed  by  imposing  edifices,  one  a hotel 
that  rises  to  13  stories,  with  many  other  .structures  in  proportion.  The  police 
are  smart  and  efficient,  trimly  dressed  in  kahki.  The  open  bazars  have  become 
modern  shops  fitted  with  plate  glass  and  having  all  the  elegancies  of  the  American 
store.  There  used  to  be  a thousand  temples  in  Canton  gorgeously  tiled  and 
colored — all  are  gone  but  a few,  ruthle.ssly  demolished  to  make  waj'  for  the  new 
streets,  or  sold  up  for  the  maintenance  of  the  new  regime  which  has  walked  rough- 
shod over  the  traditions  of  the  past.  It  is  impossible  to  estimate  the  cost  of  all 
this  new  work,  but  it  must  have  amounted  to  scores  of  millions  of  dollars.  Prob- 
ably every  new  building  contains  foreign  material  of  some  kind — -steel  beams, 
windows,  electric,  sanitary  and  other  fittings,  nails,  screws,  paint,  etc.  The 
amount  of  imported  goods  ab.sorbed  by  Canton  during  the  building  period  must 
have  been  very  great  and  is  so  proved  by  the  customs  figures,  which  have  doubled 
within  the  last  five  years.  It  is  stated  that  $120,000,000  was  extracted  from 
Canton  last  year  by  oppressive  taxation,  of  which  only  $3,000,000  was  spent  on 
the  city. 

MARKETING  AND  SALES  METHODS 

Sales  methods  in  Cliina  to-day  are  in  sharp  contrast  to  those  of 
past  years  and  are  rapidly  tending  to  make  of  this  field  a highly 
competitive  market,  calling  for  intensive  marketing  operations 
essentially  domestic  in  character.  Whereas  a few  years  ago  a manu- 
facturer’s representative  need  make  only  a passing  call  at  Shanghai 
and  Hongkong,  place  his  account  in  the  hands  of  one  of  many  larger 


10 


general  import  and  export  houses  and,  strange  to  say  in  the  light  of 
present  experience,  depart  with  the  assurance  of  a task  well  done, 
to-day  the  large  successful  general  trading  firm  with  many  branches 
in  the  interior  cities  of  China  has  almost  entirely  disappeared.  Its 
successor  has  abandoned  outport  offices,  discarded  the  many  accounts 
for  the  few  with  potentially  greater  turnover,  and  built  up  a native 
agency  organization  thi’oughout  its  territory  which  corresponds 
largely  to  a domestic  dealer  organization.  This  applies  specifically 
to  general  imports,  rather  than  specialized  lines  such  as  textiles  or 
machinery,  and,  while  the  former  is  of  slight  importance  to  American 
manufactui’ers,  the  importance  of  the  latter  makes  the  recent  com- 
ment of  the  Chinese  maritime  customs  commissioner  for  the  Shanghai 
district  of  pertinent  interest  and  reveals  an  additional  factor  in- 
fluencing China’s  changing  trade  methods.  He  said; 

During  tlie  boom  period  (postwar)  a large  number  of  firms  added  machinery 
departments  to  their  general  trading  business,  and  it  has  apparently  taken  them 
several  years  and  cost  them  a great  deal  of  money  to  realize  that  the  machinery 
trade  as  it  has  to  be  conducted  in  China  is  entirely  different  from  the  general 
indent  business  in  staple  goods.  It  is  obvious  that  for  firms  to  engage  in  a 
business  which  they  do  not  understand  must  upset  that  line  of  business  as  a 
whole;  it  is  safe  to  assume  that  the  gradual  elimination  of  such  methods  can 
only  have  good  results  for  all  concerned. 

These  native  dealers,  referred  to  above,  selected  as  a result  of 
successful  first-hand  mvestigation  of  character,  credit,  agencies  held, 
and  facilities  for  handlmg  business,  are  bound  usually  by  a form  of 
dealer  agency  agreement  adapted  to-  the  nature  of  the  product  sold, 
and  they  put  up  guaranties  of  good  faith  in  the  form  of  interest- 
paying cash  deposits,  negotiable  title  deeds,  or  guaranty  bonds 
signed  by  sponsors  pledging  additional  security,  or  a combination  of 
all  three.  Dealers  are  held  solely  responsible  for  stocks  and  sales 
in  previously  assigned  territory,  as  well  as  for  the  rendering  of 
approved  current  sales  and  stock  accounts  and  for  the  transfer  of 
funds.  Subagents  are  appointed  subject  to  mutual  approval  of 
dealer  and  company  representative.  In  the  case  of  commodities  of 
low-cost  iinits  and  wide  distribution  such  as  kerosene  oil  and  ciga- 
rettes, this  agency  system  with  its  extended  subdivisions  extends  to 
even  the  smallest  hamlet.  For  commodities  largely  for  treaty  port 
or  near-by  consumption,  such  as  specialties,  contracts  are  made 
with  one  representative  for  each  of  the  more  important  distributing 
centers  such  as  Hankow,  Tientsin,  Harbin,  and  Canton.  This 
representative  is  usually  a firm  of  relatively  lar^e  capital  and  pos- 
sessing good  credit.  Under  the  more  settled  conditions  and  lessened 
competition  of  the  past,  these  native  agencies  were  closely  supervised 
by  traveling  foreign  sales  representatives,  usually  American  or 
British.  However,  the  greatly  distrubed  conditions  of  recent  years 
which  have  made  travel  uncertain,  unsafe,  and  expensive,  together 
with  greatly  increased  competition,  have  necessarily  transferred  a 
progressively  increasing  amount  of  this  supervision  to  Chinese  hands. 
This  transformation  is  most  prominent  in  the  present-day  organiza- 
tion of  the  oil  and  tobacco  interests  in  China,  which  possess  the 
largest  marketing  organizations  in  this  field. 


of  the  native  Chinese  merchant 
western  business  methods  has 


facilitated  the  progress  of  a movement  already  far  advanced  which 
is  giving  him  an  increased  share  in  the  direction  of  both  foreign  and 


11 


■domestic  trade.  There  are  several  factois  aiding  tliis  movement, 
which  is  already  of  such  prominence  a^  to  merit  the  consideration 
of  American  manufacturers  interested  in  China  trade.  Many  of  the 
long-estabhshed  foreign  business  organizations  in  China  have  been 
slow  to  adjust  themselves  to  fast-changing  conditions,  while  thou- 
sands of  ambitious  young  Chinese  have  gone  to  western  lands, 
trained  themselves  carefully  in  technical  and  economic  lines,  and  in 
combination  with  older  and  more  conservative  membei's  of  their 
families  are  conducting  a successful  business  without  the  slightest 
dependence  on  foreign  assistance.  Department  stores,  banks,  import 
and  export  organizations,  printing  and  industrial  plants  of  every 
description  are  springing  up  all  over  the  country.  Chinese  native 
banks,  organized  along  the  lines  of  modern  banking  practice,  now 
total  over  80  with  a total  authorized  capital  of  $400,000,000  (silver), 
paid-up  capital  of  $170,000,000,  and  with  350  branch  and  main  offices. 

A trip  through  Shanghai  reveals  considerable  Chinese  building 
and  installation  of  native  manufacturing  establislunents,  both  large 
and  small.  Similar  developments  are  formd  throughout  the  country. 
Banks  firmly  established  and  soundly  organized  along  the  lines  of 
modern  banking  practice  are  securing  a gro\ving  share  of  their 
country’s  foreign-trade  financing,  as  wdl  as  domestic.  A large  and 
very  successful  Chinese  company  manufacturing  and  selling  tobacco 
products  throughout  China  has  recently  expanded  its  New  York 
office  to  a general  trading  company.  A constantly  growing  number 
of  Chinese  organizations  are  establishing  their  own  offices  in  New 
York,  Cliicago,  Seattle,  and  San  Francisco.  The  Chinese  importer 
in  Shanghai,  Hongkong,  and  other  ports  of  China  no  longer  meekly 
acquiesces  in  contributing  commissions  to  the  resident  foreign 
trader  in  his  country. 

The  marked  business  activity  apparent  on  every  hand,  together 
with  the  increasing  trade  figures  (due  allowance  being  made  for  price 
fluctuations),  and  the  chronic  pessimism  of  the  roreign  business 
population  of  China  are  facts  which  do  not  seem  to  coincide.  The 
explanation  of  the  apparent  paradox  doubtless  is  that  native  Chinese 
merchants,  banks,  and  industrialists  are  enjoying  a fair  degree  of 
prosperity  and  are  securing  a constantly  increasing  share  of  China’s 
foreign  trade  at  the  expense  of  the  foreign  trader. 

This  tendency  gives  a basis  for  common  complaint  among  importers 
in  China  which,  in  many  cases,  calls  for  a readjustment  of  sales 
policies  in  that  countr}^.  This  complaint  is  that  after  many  years  of 
pioneering  and  exploitation  work,  resulting  in  the  successful  estab- 
lishment of  products  in  this  market  at  the  cost  of  tremendous  effort, 
the  native  dealer  is  now  placing  his  orders  direct.  Few  manu- 
facturers either  render  satisfactory  accounting  for  business  received 
in  this  manner  in  retmm  for  previous  service  rendered  or  duly  protect 
the  interests  of  the  old-established  resident  foreign  trader.  In  turn, 
this  state  of  affairs  is  largely  responsible  for  the  growing  practice  of 
establishing  a resident  manufacturer’s  representative  in  this  field 
whose  major  duties  are  concentrated  in  promoting  and  directing 
sales  activities  among  local  sales  agents,  leaving  to  them  the  burden 
of  sales,  shipping,  and  financing. 

Another  fact  commonly  overlooked  in  a discussion  of  China’s  trade 
is  the  increase  in  the  Chinese  manufactures  of  styles  of  goods  hereto- 
fore supplied  from  abroad.  The  maritime  customs  report  for  1923 


gives  the  export  of  articles  of  foreign  type  produced  by  domestic 
Chinese  factories  an  aggregate  value  of  12,146,000  haikwan  taels 
in  1923,  as  against  5,081,000  taels  in  1922  and  3,725,000  in  1921. 
Figures  on  domestic  consumption  of  these  articles  are  not  available^ 
but,  needless  to  remark,  are  of  tremendous  aggregate  value  and  are 
constantly  increasing.  Soaps,  perfumes,  toilet  articles,  clothing, 
hardware,  small  machinery,  and  articles  of  every  style  and  type  are 
to-day  being  manufactured  in  China  where  only  a few  years  ago 
these  articles  were  imported  by  Chinese  foreign  traders.  At  the  end 
of  1922  no  less  than  740  factories  producing  articles  of  foreign  type 
were  in  existence.  Among  these  202  are  manufacturing  cotton  piece 
goods;  87,  socks  and  stockings;  64,  cotton  yarn;  41,  cotton  towels;  25, 
cotton  thread;  66,  soap;  42,  candles;  38,  flour;  19,  cigars  and  cigar- 
ettes; 11,  paper;  7,  slate  pencils;  and  7,  biscuits.  This  list  does  not 
include  small  establishments,  canneries,  sugar  mills,  egg-products 
factories,  cement  mills,  dockyards,  electric-light  plants,  glass  factories, 
cold-storage  plants,  tanneries,  oil  mills,  printing  establishments,  silk 
filatures,  and  woolen  mills.  The  steady  expansion  of  trade  is  partly 
explained  by  the  vast  size  of  China,  which  will  always  possess  large 
districts  and  entire  Provinces  where  economic  development  can 
proceed  unhampered  by  internal  disorders  and  partly  by  the  fact  that 
the  people  are  gradually  awakening  to  the  advantages  offered  by 
foreign  manufactured  goods. 

It  might  be  well  at  this  point  to  call  attention  to  the  fact  that, 
while  the  greater  participation  in  foreign  trade  by  native  Chinese  is 
a phase  of  a current  movement  throughout  the  Far  East  which  has 
reached  its  highest  development  in  Japan,  conditions  in  both  coun- 
tries are  not  analogous.  Development  will  be  much  slower  in  China 
and  even  in  Japan  if  the  profitable  operation  of  resident  foreign  con- 
cerns continues.  The  desirability  of  American  resident  sales  organi- 
zations in  China  is  obvious.  With  years  of  experience  in  the  market 
and  continuous  contact  with  the  consumer  they  are  in  a most  favor- 
able position  to  stimulate  and  further  American  trade.  In  the  sale 
of  machinery  and  technical  supplies  requiring  service  supervision  by 
a resident  organization  is  an  absolute  necessity. 

The  export  of  domestic  produce  of  China  has  been,  until  recent 
years,  an  adjunct  of  the  general  import  trading  organization,  but 
with  the  increased  specialization  called  for  in  import  practice  export- 
ing is  rapidly  becoming  a separate  activity.  The  most  successful 
export  organizations  now  operating  confine  their  activities  to  single 
commodities,  such  as  silk,  tea,  wood  oil,  hides  and  skins,  and  vegetable 
oils.  This  is  largely  the  result  of  limited  and  unreliable  transporta- 
tion facilities;  the  common  practice  of  adulteration  among  native 
dealers;  and  the  absence  of  uniform  and  accepted  standards,  volume 
production,  and  recognized  produce  exchanges;  aU  of  which  force 
the  exporter  to  secure,  grade,  and  ship  his  produce  under  foreign 
supervision  in  order  to  afford  a maximum  protection  of  his  interests. 
Isolated  instances  of  movements  among  Chinese  merchants  to  estab- 
lish commodity  standards  of  acceptable  commercial  value  have  re- 
sulted in  little  more  than  general  discussion  to  date.  It  is  expected 
that  participation  by  Chinese  in  the  direct  export  trade  of  China 
will  lag  considerably  behind  their  growing  participation  in  the  import 
trade. 


STANDARD  OF  LIVING 


It  is  generally  held  that  85  per  cent  of  the  population  of  China  is 
agricultural.  This  figure  is  not  based  upon. any  accurate  census  of 
the  country,  but  merely  upon  the  assumptions  of  eye  witnesses  and 
is  probably  too  high.  The  probability  is  that  25  to  30  per  cent  of  the 
population  is  engaged  in  nonagricultural  pursuits.  Not  more  than 
400,000  are  engaged  in  labor  under  the  factory  system  and  these  are 
in  the  treaty  ports  and  provincial  capitals.  It  is  also  of  interest  to 
note  that  an  estimate  classifies  73  per  cent  of  China’s  exports  by  value 
as  agricultural.  Factories,  mines,  railroads,  and  other  industrial 
enterprises  are  constantly  moving  into  the  interior  where  labor  is 
cheaper,  transportation  less  expensive,  and  strikes,  political  agita- 
tions, and  other  impediments  to  industry  less  frequent.  Modern 
industrial  enterprises  have  been  reported  in  more  than  50  different 
centers. 

A further  survey  of  China’s  trade  shows  an  increasing  variety  of 
items  within  recent  years  new  to  China  but  rapidly  becoming  classed 
as  necessities  and  articles  of  every-day  trade.  In  China  the  adoption 
of  western  ideas  of  dress  and  living  is  responsible  in  a great  measure 
for  the  rising  cost  of  living.  In  place  of  the  plain  blue  cotton  dress  of 
old,  many  women  now  wear  silk  skirts  and  stockings,  and  young  men 
may  be  seen  dressed  in  the  latest  foreign  style.  Inere  is  scarcely  an 
article  in  the  list  of  foodstuffs  in  which  there  has  not  been  a marked 
advance  during  the  last  10  years  and  in  most  cases  prices  have  doubled. 
As  an  example  of  this,  10  years  ago  the  price  of  rice  was  $3.40  per 
picul;  to-day  it  averages  $7.  Fuel,  which  in  1911  cost  20  cents  per 
picul,  to-day  costs  $1.  Vegetables  have  risen  from  2 to  4 cents  per 
catty;  vegetable  oil  from  20  to  30  cents.  Clothing  has  also  shown  a 
corresponding  rise  in  price,*  and  house  rents  and  land  values  have 
nearly  doubled.  All  of  these  advances  are  in  varying  amounts  for 
different  sections  of  the  country.  Under  these  circumstances  it  is 
not  surprising  that  successive  demands  have  been  made  during  the 
period  on  the  part  of  the  workers  for  advances  in  wages.  Carpenters, 
masons,  and  craftsmen,  who  were  content  with  35  cents  per  day  at 
the  commencement  of  the  period,  now  receive  50  cents  with  board. 
Other  wages  have  advanced  correspondingly. 

The  average  income  of  the  laboring  and  peasant  classes  is  so  small 
that  if  any  foodstuff  rises  in  price  they  feel  the  difference  acutely, 
because  their  daily  dole  for  bare  necessities  and  general  purchases  is 
already  down  to  the  irreducible  minimum.  In  the  Kankow  district 
a phenomenal  rise  in  cost  of  living  is  found.  Ten  years  ago  a laborer 
earned  $15  Mexican  per  month  and  was  better  off  than  now  with  $25 
per  month,  a situation  which  provides  material  for  professional  agi- 
tators. Every  branch  of  trade  in  China  is  represented  by  guilds,  and 
each  guild  is  practically  a trade-imion  or  has  machinery  for  becoming 
one.  In  Hankow,  rice,  wheat,  vegetables,  pork,  and  fish  have  in- 
creased 180  per  cent  during  the  last  10  years,  eggs  200  per  cent,  shoes 
and  cotton  cloth  200  per  cent,  tobacco  100  per  cent,  kerosene  150 
per  cent.  A workman  who  in  1911  spent  $2.20  silver  per  month  for 
food  now  pays  a minimum  of  $5.60,  which  represents  an  increase 
roughly  of  150  per  cent.  Wages  have  increased  and  in  general, 
artisans,  carpenters,  shoemakers,  and  tailors  get  120  per  cent  more 
than  in  1911. 


14 


In  Canton  it  is  reported  that  carpenters  and  bricklayers  there  in 
1912  were  paid  50  cents  a day  and  that  dmlng  the  ensuing  decade 
their  wages  have  steadily  risen  to  $1  or  even  more;  that  engineers 
and  mechanics  who  wei’e  receiving  50  cents  per  day  have  had  their 
pay  raised  40  per  cent.  The  decennial  reports  of  the  Chinese  maritime 
customs  shows  there  is  not  an  article  of  consumption  that  has  not 
risen  very  substantially  during  the  last  decade.  Beginning  with  rice, 
we  find  that  the  cost  of  this  commodity  fluctuates  very  considerably, 
throughout  the  period,  according  to  whether  times  were  those  of 
plenty  or  scarcity,  but  the  trend  of  prices  was  always  to  rise  rather 
than  fall,  and  compared  with  that  of  10  years  ago,  the  present  price 
of  rice  mider  normal  conditions  is  100  per  cent  higher. 

In  this  comparison  no  account  has  been  taken  of  imported  commodi- 
ties, some  of  which  the  rising  standards  of  living  have  made  essential 
needs.  These  are  described  in  the  reports  as  having  increased  by 
leaps  and  bomids.  On  top  of  all  this  there  is  formidable  taxation  in  a 
great  variety  of  forms  to  meet  the  alarming  cost  of  warfare.  With 
prices  on  a high  level,  the  rising  standard  of  living  among  the  Chinese 
will  tend  to  maintain  them.  In  not  one  of  these  reports  is  any  pros- 
pect held  out  of  a return  to  former  price  levels. 


AGRICULTURAL  ECONOMICS 

A country  in  which  agriculture  is  the  predominating  interest  of 
some  80  per  cent  of  a population  of  400,000,000  people  and  yet  almost 
entirely  lacking  in  information  and  data  on  the  subject  of  rural  and 
agricultural  economics  is  a strange  phenomenon  to  western  thought. 
Within  the  past  few  months,  however,  Chinese  students  acting  under 
the  immediate  supervision  of  Americaij  instructors  in  the  various 
educational  centers  of  the  country  have  circulated  questionnaires  in 
a large  number  of  representative  farming  communities  of  North  and 
Central  China. 

NORTH  CHINA 


The  results  obtained  from  these  questionnaires  in  five  Provinces 
of  North  China  containing  240  villages  are  shown  in  the  tables  which 
follow.  As  an  aid  to  the  proper  interpretation  of  these  tables  the 
following  statement  is  given  which  shows  the  density  of  population 
per  square  mile  in  the  five  Provinces: 


Chekiang. 
Kiangsu . 
Anhwei -- 
Shantung 
Chihli 


2,  270-6,  880 
980-2,  050 
290-  40 

1,  800-3,  000 
550-2,  010 


The  following  table  shows  the  proportion  of  the  population  of  the 
five  Provinces  engaged  wholly  in  amiculture  compared  with  the  pro- 
portion engaged  part  time  in  agriculture  and  part  time  in  other  work : 


15 


Engaged 

Engaged 

Engaged 

whole 

part 

whole 

Provinces 

time  in 

time  in 

time  in 

agiicul- 

other 

other 

ture 

work 

work 

Per  cent 

Per  cent 

Per  cent 

Chekiang , 

75.  7 

1.8 

22.5 

Kiilhgsu.- 

87.4 

8.  7 

3.9 

Anhwei 

58.3 

17.3 

24.4 

Shantung. 

97.2 

1.3 

1.5 

Chihli 

91.0 

3.  5 

5.5 

It  should  be  recogtdzed  that  the  majority  of  those  who  are  engaged 
part  time  in  some  otlier  employment  will  give  the  rest  of  their  time 
to  the  land,  so  that  the  total  percentage  of  those  who  are  occupied 
in  agriculture  is  rendered  even  more  striking.  Taking  this  vast 
aggregate  of  cultivators  as  a basis,  it  is  interesting  to  obtain  therefrom 
some  estimate  of  the  number  who  actually  own  their  land  and  those 
who  are  only  tenants,  this  again  varying  very  considerably  as  between 
the  northern  and  the  southern  Provinces.  Following  are  the  figures 
for  the  northern  Provinces: 


Provinces 


Chekiang. 

Kiangsu-- 

Anhwei-- 

Shantung. 

Chihli,... 


Cultivated 
by  owner 

Cultivated 
by  tenant 

Per  cent 

Per  cent 

32.6 

67.4 

.32.6 

67.4 

50. 1 

49.9 

99.5 

0.5 

89  3 

10.7 

These  figures  sum  up  in  brief  the  agricidtural  and  other  conditions 
affecting  the  rural  population,  and  it  now  becomes  necessary  to 
tabulate  the  incomes  of  this  group  and  from  this  to  deduce  as  far 
as  possible  what  is  their  standard  of  living.  The  following  table 
shows  the  average  annual  income  of  families  holding  no  land  and 
those  cultivating  from  1 to  26  mow:  ^ 


Provinces 

Family 
income, 
no  land 
held 

Income 

from 

1 to  3 
mow 

Income 

from 

3 to  5 
mow 

Income 

from 

3 to  6 
mow 

Income 

from 

11  to  26 
mow' 

Silver 

Silver 

Silver 

Silver 

Silver 

dollars 

dollars 

dollars 

dollars 

dollars 

Chekiang-. 

63 

96 

110 

151 

219 

Kiangsu... 

28 

40 

81 

141 

241 

.\nhwei 

1 111 

60 

73 

90 

131 

Shantung. . 

36 

32 

37 

49 

87 

Chihli 

18 

14 

24 

38 

71 

1 This  family  income  is  divided  as  follows:  Home  industry,  3.8  per  cent;  wages,  17  per  cent;  farm  pro- 
ducts, 68.3  per  cent;  other  sources,  10.9  per  cent. 


Considering  that  part  of  the  population  which  has  an  income  of 
less  than  $1.50  per  annum,  it  is  found  that  between  50  and  60  per 
cent  are  below  that  limit  in  the  south,  while  in  the  north  the  figure 


’ One  mow  equals  one-sixth  of  an  acre. 


16 


rises  to  over  80  per  cent,  a striking  commentary  on  the  hopeless 
poverty  which  exists  throughout  Cmna.  This  income  of  $150  has 
been  selected  as  a reference  point  for  the  reason  that  it  is  the  mini- 
mum on  which  suflRcient  food  and  clothing  can  be  purchased  for  a 
family  of  five  persons  in  agricultural  employment,  as  estimated  on 
the  basis  of  figures  suppUed  by  well-known  authority  on  economics, 
Prof.  B.  E.  Read,  of  the  Peking  Union  Medical  College.  The  diet 
sheet  drawn  up  by  this  institution  to  show  the  amount  of  food 
adequate  to  maintain  a group  of  five  might  be  supposed  to  represent 
extreme  poverty,  for  in  it  we  find  no  meat  whatever,  no  eggs  and  no 
fish.  While  its  calorific  and  protein  value  is  just  sufficient  for 
maintenance,  its  cost  is  only  one-third  that  of  an  equally  nourishing 
diet  in  any  occidental  country.  It  is  obvious  that  the  standard  of 
living  is  far  below  this  assured  poverty  line  in  aU  the  Provinces  under 
examination,  for  whereas  the  cnarge  of  $150  is  estimated  as  the  cost 
of  food  alone,  it  would  certainly  be  necessary  to  add  20  per  cent  to 
this  to  cover  clothing,  fuel,  light,  etc. 

The  only  way  in  which  it  is  possible  for  the  farmer  to  exist  at  all 
is  by  a drastic  cut  in  food  consumption,  and  this  is  what  actually 
takes  place,  for  during  the  winter  months  he  may  be  said  practically 
to  hibernate,  saving  himself  from  all  unnecessary  exertion  from 
December  to  March  and  emerging  in  the  spring  to  work  again  on 
the  fields  in  such  an  emaciated  condition  as  to  render  him  unfit  for 
any  real  exertion  for  several  weeks. 

It  is  evident  from  the  foregoing  that  the  pressure  of  population 
throughout  China  is  a very, grim  reahty,  and  a considerable  number 
of  families  would  seem  to  disintegrate  under  the  economic  stress  of 
conditions  which  they  themselves  are  unable  to  alleviate.  Even  if 
one  supposes  that  the  figures  thus  quoted  are  too  low,  and  un- 
fortunately there  seems  no  reason  to  think  this  to  be  the  case,  the 
general  impression  of  calamity  and  suffering  would  remain.  The 
Chinese  live  so  near  to  the  margin  of  existence  that  even  in  the  good 
years  it  is  necessary  of  them  to  eat  elm  bark  and  to  gather  wulow 
leaves  to  eke  out  the  winter  rations.  While  this  food  may  inure  the 
people  to  famine  conditions  and  diet,  when  famine  comes  and  they 
nave  nothing  else,  their  low  standards  of  living  and  lack  of  any 
margin  for  saving  or  improvement  precludes  the  possibility  of 
progress.  One  can  hardly  believe  that  human  beings  could  exist 
on  such  a standard  as  the  figures  show,  but  neither  would  it  seem 
possible  to  live  on  an  income  even  twice  as  large  as  that  which  is 
reported  by  the  investigators  appointed  by  the  China  International 
Famine  Relief  Commission. 


CENTRAL  CHINA 

Three  hundred  and  fifty  farms  and  their  occupants,  a large  pro- 
portion of  which  were  located  in  three  typical  villages  in  the  neighbor- 
hood of  Wuhu,  Anhwei  Province,  were  tabulatea  and  analyzed  by 
the  College  of  Agriculture  and  Forestr}^  of  the  University  of  Nanking 
and  the  data  recorded  with  the  following  results; 

Land  tenure. — Fifty-five  per  cent  of  the  operators  were  owners, 
32  per  cent  were  part  owners,  and  13  per  cent  were  tenants.  The 
term  “ operator/’  as  used  here,  refers  to  the  man  who  manages  the  farm 
and  also  works  on  it.  The  term  "part  owner”  refers  to  the  operator 
who  owns  part  of  his  land  and  rents  the  rest  from  some  one  else. 


17 


Labor  income. — The  labor  income  of  the  owners  was  less  than  $15 
(silver);  that  of  part  owners  $156,  and  of  the  tenants  $105.  Labor 
income  is  what  the  operator  has  left  after  subtracting  all  expenses 
from  all  receipts.  Interest  on  capital  invested  and  the  value  of 
unpaid  labor  (except  operator’s)  are  counted  as  expense.  The  value 
of  produce  from  the  farms  used  by  the  family  is  counted  as  receipts. 

Net  family  income. — The  net  family  income  of  the  owners  was 
$120.05;  that  of  part  owners  $267.15,  and  of  the  tenants  $63.43. 
The  average  size  of  the  family  (including  all  persons  living  in  the 
operator’s  household)  was  5.4  persons.  The  net  family  income 
represents  the  actual  amount  of  money  the  family  had  available  at 
the  end  of  the  year  in  addition  to  any  produce  used  from  the  farm, 
and  the  house  rent. 

Size  of  farms. — The  owners  farmed  an  average  of  20  mow,  the 
part  owners  an  average  of  37  mow,  and  the  tenants  an  aA^erage  of  15 
mow.  The  average  for  all  three  groups  was  24  mow.  Dividing  the 
farms  into  groups  we  find  13  per  cent  m the  group  of  10  mow  or  less, 
52  per  cent  in  the  group  of  11  to  20  mow,  15  per  cent  in  the  group 
of  21  to  30  mow,  and  20  per  cent  in  the  group  of  31  mow  or  over. 

We  find  that  the  size  of  the  farm  has  a definite  correlation  with 
profits.  In  the  group  of  10  mow  or  less  only  7 per  cent  of  the  oper- 
ators are  making  a labor  income  of  over  $50.  The  percentage  in- 
creases proportionately  until  in  the  group  of  31  mow  and  over,  50 
per  cent  are  making  a labor  income  of  over  $50. 

Man  labor. — Man  labor  Avas  much  more  efficient  on  the  large  farms 
than  on  the  small  ones.  In  the  group  of  10  moAv  or  less,  $40  AA'orth 
of  labor  farmed  2.5  mow,  while  in  the  group  of  31  moAv  and  oA^er  it 
farmed  5.7  mow. 

Animal  labor. — -Animal  labor  was  almost  three  times  as  efficient 
on  the  large  farms  as  on  the  small  ones.  In  the  group  of  10  moAv 
or  less  one  animal  farmed  10.6  mow,  while  in  the  group  of  31  moAv 
and  over  one  animal  worked  28.8. 

Equipment. — Equipment  was  nearly  twice  as  efficient  on  the  large 
farms.  In  the  group  of  10  moAV  or  less,  $20  Avorth  of  tools  and  equip- 
ment farmed  4 moAv,  AA’hile  in  the  group  of  31  moAv  and  over  the  same 
amount  of  equipment  farmed  7.1  mow. 

With  75  per  cent  of  the  farm  expenses  expended  on  man  labor  it  is 
not  surprising  that  the  large  farms  are  making  the  larger  labor 
incomes.  Not  only  is  the  business  larger  but  the  man  labor  as  well 
as  animal  labor  and  equipment  are  used  much  more  economically 
on  the  larger  farms.  This  is  due  to  the  fact  that  men,  animals,  and 
equipment  are  not  idle  as  much  of  the  time  on  the  large  farms  as  on 
the  small  ones  and  also  that  large  units  can  be  worked  to  better 
advantage  and  Avith  less  loss  of  time  in  going  from  one  job  to  another. 

• It  is  significant  that  the  part  owners  AA'ere  the  ones  who  had  large- 
sized farms  (average  of  37  mow)  and  also  the  largest  labor  incomes: 
that  is,  $156. 

Capital. — ^In  the  case  of  the  32  per  cent  part  OAATiers  we  have  a 
definite  correlation  of  capital  to  labor  income.  In  the  capital  group 
of  $1,500  or  less  the  part-OAAmer  operators  Avere  obtaining  an  annual 
return  of  $18,  AAdiile  in  the  capita!' gi'oup  of  $5,001  and  over  they  Avere 
making  $112. 

Among  the  OAvners  the  annual  labor  income  in  the  capital  groups 
of  $1,500  or  less  is  $9  and  in  the  group  of  $1,501  to  $2,500  is  $16, 


18 


In  the  other  three  groups-  there  is  a minus  labor  income  which  may 
be  accounted  for  in  two  ways — fii’st,  because  of  the  small  number  of 
farmers  in  each  group,  thus  making  the  possibility  very  great  of 
these  farmers  happening  to  be  inelbcient;  and  second,  and  the  more 
probable  reason,  as  the  owner  gets  richer  he  works  less.  This  latter 
reason  is  the  one  given  by  the  man  securing  the  data. 

Influence  of  character. — It  is  interesting  to  note  the  relation  of 
character  to  labor  income.  The  66  per  cent  of  farmers  reported  as 
having  good  character  were  making  a labor  income  of  .S34.12,  while 
the  34  per  cent  reported  as  having  bad  character  (mostly  gambling 
and  drinking)  were  making  a labor  income  of  less  than  $20.32. 
Seventy-two  per  cent  of  these  reported  with  bad  character  were  in 
the  owner  class.  This  may  help  to  explain  the  low  labor  income  of 
the  owners. 

The  men  with  good  character  were  working  larger  farms — 28  mow — 
while  the  others  had  farms  of  20  mow.  One  might  say  that  the  large 
income  is  due  to  a larger  farm  rather  than  to  good  character.  But  in 
looking  over  the  records  it  is  the  man  with  bad  character  who  is 
selling  his  land  and  consequently  he  has  a small  farm. 

Under  this  heading  of  character  it  may  be  well  to  mention  that  40 
per  cent  of  the  families  were  reported  as  having  feuds  with  other 
families. 

In  general  the  investigations  show  that  the  average  number  of 
separate  pieces  of  land  per  farm  were  seven  and  the  average  number 
of  mow  per  piece  was  3.5.  The  average  distance  between  these  pieces 
of  land  was  one-tenth  of  a mile,  the  farthest  piece  being  2%  miles 
away.  Of  those  owning  their  property,  73  per  cent  reported  that  it 
was  inherited,  22  per  cent  that  it  was  both  inherited  and  purchased, 
and  5 per  cent  that  it  was  purchased. 

The  average  age  of  marriage  for  men  was  22,  the  lowest  17,  and  the 
highest  26.  The  average  age  of  marriage  for  women  was  19.5,  the 
lowest  14,  and  the  highest  25.  Labor  was  exchanged  on  48  farms  on 
an  average  of  10  days  per  farm.  Animals  and  implements  were 
exchanged  by  40  farms  for  a total  period  of  1 1 days.  All  the  operators 
were  born  in  the  same  village  in  which  they  are  now  living,  the  same 
being  true  of  the  operators’  fathers.  Of  the  operators’  wives,  38  per 
cent  came  from  the  same  village  as  the  operator. 

PURCHASING  POWER  OF  CHINA 

In  the  absence  of  accurate  statistics  it  is  impossible  to  estimate 
authoritatively  Chinese  purchasing  power  with  any  considerable 
degree  of  accuracy.  A possible  index  of  interest  would  be  a figure 
arrived  at  from  a comparison  of  foreign  and  domestic  trade  volumes 
over  a period  of  years  -with  populations,  but  here  we  have  an  absence 
of  domestic  trade  data  and  a population  for  which  we  have  several 
estimates  varying  by  .50,000.000  to  150,000,000. 

The  casual  observer  is  apt  to  jump  to  the  conclusion  from  a brief 
contact  with  the  Chinese  people  in  the  larger  cities  that  the  mode  and 
standard  of  living  for  the  entire  country  have  undergone  radical 
changes  in  the  past  few  years,  whereas  this  assumption  is  erroneous 
when  applied  to  the  entire  country.  The  great  bulk  of  Chinese 
population  is  engaged  in  agricultural  pursuits  and  reside  in  villages 
and  hamlets  far  beyond  the  influence  of  western  civilization  vdth  its 


19 


contrasting  standards  of  living.  These  people  have  not  improved 
their  economic  status  during  the  last  25  years,  as  may  be  seen  from 
the  foregoing  data  on  agricultural  economics.  Increased  returns  from 
agricultural  produce  have  been  overbalanced  by  the  increased  cost 
of  living,  increased  taxation,  and  by  floods,  droughts,  and  civil 
warfare. 

EXPORTS  A GAUGE  OF  ECONOMIC  CONDITIONS 

A survey  of  export  commodities  produced  over  a widespread  area 
of  China  for  a considerable  period  of  time  reflects  in  some  degree 
the  economic  condition  of  the  country.  Naturally,  the  continual 
civil  and  military  disturbances  have  influenced  this  condition  and  due 
consideration  must  also  be  given  to  other  domestic  factors,  as  well 
as  to  those  of  international  supply  and  demand.  Further  allowance, 
impossible  to  estimate  on  a quantity  basis,  must  be  made  for  domestic 
economic  practices  distinctly  Chinese  and  differing  widely  from  the 
accepted  practices  of  other  nations.  Among  these  may  be  noted 
the  eommon  practice  of  Chinese  cotton  farmers  of  retaining  relatively 
large  quantities  of  cotton  for  padding  their  winter  garments,  bedding, 
etc.,  and  for  home  spinning  w-hen  cotton  prices  give  them  a low  return 
for  their  labor,  thus  withholding  from  the  usual  trade  channels 
quantities  which  in  the  aggregate  are  of  considerable  volume.  Similar 
practices  undoubtedly  extend  to  other  products.  Unattractive 
prices  for  hides  and  skins,  in  the  absence  of  a recognized  and  distinct 
grazing  or  cattle-raising  industry,  result  in  the  cattle  or  goats  either 
being  held  for  foodstufe  and  the  hides  and  skins  consumed  domes- 
tically or  the  animals  used  for  draft  until  the  following  season  when 

g rices  may  be  more  remunerative.  There  is  a very  definite  differential 
etw^een  the  prices  of  imported  kerosene  oil  and  native  vegetable 
oils  which,  if  exceeded  very  materially,  reduced  kerosene  oil  con- 
sumption. However,  by  taking  figures  for  a long  period  of  time,  as 
we  nave  in  this  case,  these  factors  are  largely  interbalanced  and 
sufficient  evidence  presented  to  permit  an  understanding  of  the 
general  tendency  of  the  nation  as  a whole. 

In  the  table  b'elow,  tea,  silk,  wood  oil  (including  vegetable  oils), 
hides  and  skins  are  taken  as  more  or  less  primary  products  representa- 
tive of  a large  and  diversified  area  of  China.  This  area  includes  those 
districts  in  which  the  disturbances  already  referred  to  have  taken 
place.  The  products  enumerated  are  those  which  enter  into  inter- 
national trade  and  can  not  be  entirely  consumed  within  the  country 
like  cotton,  w^heat,  and  rice.  They  are  therefore  more  immediately 
dependent  upon  unhampered  interior  transportation  facilities  and 
undisturbed  political  conditions.  Production  figures  for  cotton, 
wheat,  and  rice  over  a long  period  would  be  highly  interesting,  but 
such  figures  are  imfortunately  not  available.  Export  statistics 
would  be  of  little  value  in  determining  production,  as  domestic  con- 
sumption is  an  unknown  quantity. 


20 


Representative  Chinese  Exports 


Years 

Tea 

Silk 

Vegetable 

oils 

Hides  and 
skins 

1897 

Piculs 

1,  532, 158 

Piculs 
217, 392 

Piculs 

294,  906 

Piculs 

216,  525 

1898 

1, 538,  600 

210, 471 

320, 632 

226, 335 

1899 

1,  630,  795 

281, 102 

241,  762 

232,  700 

1900 

1,  384, 324 

174,  323 

279,  600 

233, 912 

1901 

1, 157, 993 

215, 546 

343, 434 

234, 509 

1902 

1,  519,  211 

217,  555 

465, 822 

295, 205 

1903 

1, 677,  530 

211,220 

421, 436 

Haikwan  taels 
7, 206, 776 

1904 c 

1,451, 249 

1, 369,  298 

218, 088 

461, 168 

10, 658, 192 

1905 

228, 099 

431, 945 

8,  791, 806 

1906 

1, 404, 128 

213, 288 

555,  570 

9,  774, 046 

1907 

1,  610, 125 

260, 439 

454, 607 

11,871,583 

1908 

1,  576, 136 

254,  686 

602, 693 

9, 173, 763 

1909 

1, 498, 443 

250, 053 

752,  117 

12,  678, 879 

1910 

1,  560, 800 

305, 383 

817,  292 

15, 832, 074 

1911 

1, 462, 803 

307, 171 

974, 340 

13, 172, 166 

1912 

1, 481,  700 

320,  796 

976, 452 

12, 091,112 

1913 

1, 442, 109 

317, 384 

1,  212, 037 

19, 817, 957 

1914 

1,  495,  799 

226, 193 

1, 262, 122 

17,211,841 

1915 

1,  782,  353 

337, 284 

1, 689,  767 

22, 850, 875 

1916 

1, 542, 633 

335,  504 

2, 647, 405 

23, 047, 506 

1917... 

1, 125, 535 

329,  557 

2, 841, 326 

25, 265, 758 

1918 

404, 217 

302, 078 

3, 380, 170 

19, 240,  664 

1919 

690, 155 

345,  608 

4,  256, 237 

18, 950, 121 

1920 

305,  906 

229,  799 

3, 104,  730 

16,  327,  705 

1921 

430,  328 

275,  789 

2,  045,  546 

10, 831, 310 

1922 

576, 073 

306, 532 

2, 624,  993 

13,  227,  193 

1923 

801,417 

344, 492 

3, 443, 905 

14,  766, 495 

Note.— One  picul  equals  133H  pounds.  Tea  includes  black,  green,  brick,  tablet,  dust,  and  leaf  unflred. 
Silk  includes  raw,  white,  yellow,  rereeled,  steam  filature,  wild,  cocoons,  waste  silk,  refuse  cocoons,  and 
waste  yarn.  Vegetable  oils  include  bean,  groundnut,  tea,  and  wood  oil.  Hides  and  skins  from  1897  to 
1902  include  cow  and  buffalo  hides  in  piculs.  Hides  and  skins  from  1903  to  1923  include  cow,  buffalo,  and 
goat,  and  are  expressed  by  value  in  haikwan  taels.  Average  value  haikwan  tael,  1923,  equals  $0.80,  United 
States  currency. 

Silk  is  probably  China’s  oldest  and  most  important  industry, 
being  the  largest  single  item  in  her  exports  and  accounting  for 
almost  one-quarter  of  her  total  export  trade.  Sixty-eight  per  cent 
of  this  exported  silk  is  produced  in  the  Yangtze  River  valley  and 
northern  China,  while  32  per  cent  comes  from  South  China.  The 
economic  value  of  China’s  new  silk  production,  per  unit  of  quantity, 
or  per  unit  of  area  and  population  engaged,  is  smaller  than  that  of 
Italy,  France,  Japan,  or  the  Near  East  and  probably  exceeds  only 
that  of  some  of  the  most  primitive  silk-producing  regions.  Little 
tendency  is  noted  of  attempts  to  increase  the  economic  value  of 
China’s  silk  products  as  a means  of  balancing  foreign  trade  or  im- 
proving the  economic  status  of  the  people,  and,  as  may  be  seen  from 
the  table  below,  no  well-defined  movement  is  apparent  either  toward 
increased  quantity  or  improved  quality. 

A survey  of  the  tea  trade  gives  much  the  same  result,  quantities 
remaining  fairly  constant  over  a long  period  of  time  with  quality  and 
standards  declining.  There  has  been  a marked  falling  off  in  demand 
in  recent  years,  commonly  credited  to  the  absence  of  the  important 
Russian  market.  Wood  oil,  tea  oil,  bean,  groundnut,  and  other 
vegetable  oils  show  a remarkable  gain  in  quantity  and  value. 
Whether  or  not  this  is  a result  of  a highly  profitable  export  of  these 
commodities  with  partial  replacement  for  domestic  consumption  by 
imported  lower-cost  kerosene  oil  is  difficult  to  determine.  No 
figures  for  quantities  are  available  for  hides  and  skins,  but  figures 
for  value  from  1903  to  1924  indicate  little  change  in  these  products. 


2,1 

SIGNIFICANCE  OF  CERTAIN  IMPORTS 

The  table  of  imports  which  appears  below  is  particularly  signifi- 
cant. The  enormously  increased  importation  of  tobacco  and  to- 
bacco products  is  augmented  by  a tremendously  increased  domestic 
production  impossible  to  estimate.  < Kerosene  oil  has  already  been 
noted  in  connection  with  the  table  of  exports.  Under  the  flom’  and 
rice  headings  we  find  that  China,  essentially  an  agricultural  coimtry 
and  commonly  supposed  to  be  a large  source  of  supply  for  foodstuffs, 
is  importing  these  in  very  sizable  quantities. 

This  change  from  the  production  of  foodstuffs  for  domestic  con- 
sumption to  the  production  of  “money  crops”  is  a tendency  common 
to  practically  the  entire  Far  East. 


Imports  of  Cigarettes  and  Cigars,  Kerosene,  Flour,  and  Rice  into  China 


Year 

Cigarettes  and 
cigars 

Kerosene  oil 

Flour 

Rice 

Haiku  an  taels 

Gallons 

Haikwan  taels 

Piculs 

1897 

514, 406 

99, 348, 908 

1, 221, 516 

2, 103, 702 

1898 

687, 364 

96. 882, 126 

1, 774, 712 

4, 645, 360 

1899. 

870, 303 

88, 413, 307 

3, 189, 497 

7, 365, 217 

1900 

1,011,653 

83,580,024 

3, 329. 868 

6, 207, 226 

1901 

2, 217, 990 

150, 885, 796 

4.  726, 962 

4,411,609 

1902 

1, 999, 119 

89, 933, 907 

3, 844, 319 

9, 730, 654 

19a3 

3, 242, 875 

84, 999, 335 

2, 944. 466 

2, 736, 943 

1904 

4, 322, 417 

156, 901, 215 

3. 686, 615 

3, 325, 252 

1905.... 

6, 481, 610 

153, 470, 831 

3, 713, 572 

2, 227, 916 

1906 

7, 904, 937 

128, 353, 690 

6, 295, 753 

4, 686, 452 

1907.... 

5, 823, 406 

161, 284, 365 

13, 984, 546 

12, 765, 189 

1908 

6, 929, 208 

186, 084, 950 

6,931,204 

6, 736, 616 

1909 

7, 180, 940 

145, 719, 886 

2, 699, 616 

3, 797, 705 

1910 : 

9, 369, 148 

161, 389, 583 

3,  447,  385 

9, 221, 389 

1911 

10, 429, 955 

235, 898, 240 

8, 717, 836 

5, 302, 805 

1912 

12, 213, 175 

197, 902, 326 

12, 701. 328 

2, 700, 391 

1913 

16, 854, 901 

183, 984, 052 

10, 306. 756 

5,414,896 

1914.. 

16, 577, 361 

230, 200, 708 

9, 144, 052 

6, 744,  266 

1915 

14, 178, 782 

185, 070,  111 

i 805, 745 

8, 476, 058 

1916 

30, 105, 398 

145, 390, 253 

1, 305, 550 

11.  284,023 

1917 

35, 485, 487 

157, 910, 941 

2, 898, 509 

9, 837, 182 

1918 

30, 364, 290 

110,  202, 234 

27,857 

6,984,025 

1919 

27, 185, 633 

199, 309, 753 

1, 242, 373 

1, 809, 749 

1920 

35, 741,  138 

189, 588, 540 

2, 363, 512 

1, 151, 752 

1921.. 

39, 956, 551 

175, 110, 125 

3, 805, 318 

10, 629, 245 

1922 

42,  407, 440 

209, 192, 390 

19, 798, 304 

19, 156, 182 

1923 

41, 669, 545 

214, 835, 669 

36, 329, 013 

22, 434, 962 

Notes. — One  picul  equals  133Ji  pounds.  Cigarettes  and  cigars  from  1903  to  1923,  inclusive,  include  to- 
bacco, cigarettes,  and  cigars.  Flour  Irom  1909  to  1923,  inclusive,  includes  flour  and  wheat.  Value  of  the 
haikwan  tael,  1923,  equals  $0.80,  United  States  currency.  While  quantitatively  exports  have  remained 
fairly  constant,  values  on  the  whole  have  increased  enormously. 


Sources  of  information. — District  annual  reports  and  the  Statistical  Abstract 
for  1923  of  the  Chinese  Maritime  Customs  have  furnished  considerable  of  the 
material  in  this  bulletin.  Further  information  has  been  taken  from  the  China 
Yearbook  for  1924-25,  and  from  reports  of  field  oflBcers  of  the  Bureau  of  Foreign 
and  Domestic  Commerce. 


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